Helen of Troy Limited Reports 6.4% Revenue Decline and $899M Net Loss for Fiscal Year Ending February 28, 2026

Helen of Troy Limited reported a significant decline in its financial performance for the fiscal year ending February 28, 2026, with consolidated net sales revenue decreasing by 6.4% to $1.79 billion, down from $1.91 billion in the previous fiscal year. The company experienced a consolidated operating loss of $782.1 million, compared to an operating income of $142.7 million in fiscal 2025. This downturn was primarily attributed to substantial asset impairment charges totaling $885.9 million, which included $706.5 million related to goodwill and intangible assets. The net loss for the year was $899.0 million, translating to a diluted loss per share of $39.08, a stark contrast to the diluted earnings per share of $5.37 reported in the prior year.

The company’s Beauty & Wellness segment saw a revenue decline of 4.8%, while the Home & Outdoor segment experienced an 8.1% drop in sales. The overall decrease in sales was driven by reduced consumer demand, increased competition, and the impact of tariffs on product pricing and availability. Notably, the acquisition of Olive & June, completed in December 2024, contributed $106.7 million to revenue, but this was not enough to offset the declines in other areas. The company also reported a decrease in gross profit margin to 45.7%, down from 47.9% in the previous year, primarily due to higher tariffs and increased promotional expenses.

Strategically, Helen of Troy has undergone significant organizational changes, including the appointment of a new CEO with transformation experience aimed at stabilizing the business. The company is currently engaged in a comprehensive review of its strategic priorities, focusing on modernizing its business model, enhancing product innovation, and improving asset efficiency. The company has also initiated Project Pegasus, a global restructuring plan designed to optimize its brand portfolio and streamline operations, which is expected to yield annualized pre-tax operating profit improvements of approximately $75 million to $85 million by the end of fiscal 2027.

Operationally, Helen of Troy reported a total employee headcount of 1,854 as of February 28, 2026. The company continues to face challenges related to its supply chain, particularly due to its reliance on third-party manufacturers in Asia, which accounted for approximately 83% of finished goods purchased in fiscal 2026. The company is actively working to diversify its manufacturing base to mitigate risks associated with tariffs and supply chain disruptions. Additionally, sales to its top five customers, including Amazon, Walmart, and Target, accounted for approximately 50% of total net sales revenue, highlighting the concentration of its customer base.

Looking ahead, Helen of Troy anticipates continued challenges due to macroeconomic conditions, including inflation and evolving consumer spending patterns. The company is focused on improving its balance sheet health and productivity while navigating the impacts of tariffs and competition. Management remains cautious about future performance, emphasizing the need for strategic investments and operational efficiencies to drive long-term growth and profitability.